Over 40% of Crypto Investors Defer Profit-Taking Due to 'High Taxes'

Survey Overview

JinaCoin (https://jinacoin.ne.jp/), a crypto asset news media outlet operated by jaybe Inc. (Headquarters: Takamatsu, Kagawa Prefecture; CEO: Takayuki Mizusawa), conducted an internet survey on taxes and profit-taking in crypto asset investments, targeting 351 residents in Japan aged 20 or older.

Currently, Japan is considering a policy shift for crypto asset transactions from 2028 onwards, aiming to transition from the current comprehensive tax rate of up to 55% to a self-assessment separate taxation rate of approximately 20%. This survey sheds light on how the tax burden of crypto assets influences investors' decisions to take profits.

Key Findings Summary

- 19.3% of all respondents reported having deferred profit-taking due to high taxes. - Among investors who have actually made profits, 42.0% have experienced deferring profit-taking. - Among current crypto holders, more than half of those with a total valuation of 100,000 yen or more have experienced deferring profit-taking. - By age group, respondents aged 60 and older reported the highest experience rate at 57.2%.

Detailed Results

### Profit-Taking Deferral Experience

In the survey of all 351 respondents, 19.3% reported deferring profit-taking due to tax concerns, consisting of 10.5% reporting '1–2 times' and 8.8% reporting 'multiple times.' Among 179 experienced investors, the rate rises to 35.2%. Furthermore, when limited to the 150 respondents who have actually realized profits (including unrealized gains), the deferral rate climbs to 42.0%.

### Impact of Portfolio Valuation

Analysis of the 125 current crypto holders showed that for those with a portfolio valuation of 100,000 yen or more, the experience rate of deferring profit-taking exceeded 50%. Specifically, the rate was 54.8% for those in the 100,000–500,000 yen range, 65.0% for 500,000–1,000,000 yen, and 68.8% for 1,000,000–5,000,000 yen. This suggests that the higher the valuation, the more the tax burden influences the decision to take profits.

### Differences by Generation

By generation, respondents aged 60 and older showed the highest experience rate at 57.2%, followed by those in their 40s at 37.3% and 30s at 36.1%. In contrast, respondents in their 20s reported a relatively lower experience rate of 33.3%.

Conclusion

The survey clearly indicates that high taxes are a significant deterrent for many investors when considering profit-taking. As Japan moves toward a potential transition to separate taxation for crypto assets, this may lead to shifts in investor selling behavior and potentially improve market liquidity in the future.